Non-resident companies can claim TDS without PAN; CBDT [Read Notification]


By the virtue of recent notification issued by Central Board of Direct Taxes (CBDT), Non-resident / foreign companies can now claim benefits of tax treaty by just providing personal details including, name, address and tax residency certificate, even without providing PAN.

The Central Board of Direct Taxes (CBDT) has inserted a new clause Rule 37BC, which gives relaxation from deduction of tax at higher rate under section 206AA of the Income Tax Act to non-residents from furnishing PAN number in India while claiming TDS benefits.

If the deductee not having permanent account number the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor, the notification said.

Non-residents can now claim the beneficial provisions of the tax treaty by providing personal details – name, email-id, address etc; Tax Residency Certificate (TRC) and Tax Identification Number (TIN) or any other Unique Identification number obtained in the country of residence, it also said.

Read the full text of the notification below.